JPMorgan Cuts Singapore Market to Underweight

JPMorgan downgrades Singapore market to Underweight (previous rating not available). Says downgrade reflects move up the risk curve given, Singapore market has “defensive bias on a sector composition perspective,” which does not fit well with broker’s “overall backdrop of a call to add risk to portfolios.” Adds Singapore economy entered recession before rest of region, and despite aggressive fiscal spending economy still faces lackluster growth prospects through 2009-2010. Suggests investors lighten their pure Singapore defensive positions in stocks such as land transport, telecom and add to high quality, liquid stocks in property, offshore & marine sectors. Says top picks are DBS (D05.SG), Olam (O32.SG), Keppel Corp. (BN4.SG) and City Developments (C09.SG). STI last +1.2% at 1693.45.